Florida Life and Health Insurance License Practice Test

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Prepare for the Florida Life and Health Insurance License Test. Study with flashcards and multiple choice questions, each with hints and explanations. Get ready for your certification exam with ease!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

How are premiums paid by an employer for an employee's group Medical Expense insurance treated for tax purposes?

Taxable as income to the employee
Not deductible by the employer
Deductible by the employer as a business expense
Considered a gift to the employee

The correct answer is: Deductible by the employer as a business expense

Premiums paid by an employer for an employee's group Medical Expense insurance are deductible as a business expense because they are considered a necessary cost of doing business. Option A is incorrect because the premiums are not considered taxable income to the employee. Option B is incorrect because the premiums are deductible by the employer. Option D is incorrect because the premiums are not considered a gift to the employee.